Wednesday, October 12, 2011

Week 2 EOC: Videos Games

With the growth of technology you can expect the longevity of videos games to decrease. Though game creators have made changes to their gaming systems it has still been lackluster with the advancement in today’s technology. In the gaming market today the most accessible way to play games is literally in the palm of your hand: your cell phone. With the creation of apps for iPhone and Android gaming is so easy that you can have a quick game of “Words with Friends”.  “Many console and PC game sales are also being cannibalized by digitally downloaded games and alternative entertainment sources like Apple Inc.'s iPhone, which offers thousands of games that can cost only 99 cents or even nothing at all.” (http://online.wsj.com/article/SB124865158612682399.html#printMode) Mobile devices have become to star of the gaming world. Though Nintendo Wii was a hit with its debut in stores till 2006, it is become the cash cow of Nintendo’s gaming systems. Stores couldn’t keep up with the demand for the Wii in the first two years it was being sold. Though popular for its wireless controller and ability to watch streaming movies, Nintendo has decided to lower its price from $250 to $149.99. Just in time for the holidays. “The Wii along with many of their games became an overnight success when the console was originally introduced. Over the last few years the system has sold a record number of units but due to competition from other gaming console manufacturers, their Wii sales have declined.” (http://thestockmarketwatch.com/stock-market-news/recent-events/nintendo-lowers-cost-of-wii/8258) It seems that the gaming world has their work cut out for them to be innovative for consumers. Even the popular gaming system for younger children, Nintendo 3DS, has seen a decrease in sales. “The company has had a pretty torrid 30 days or so, culminating in the embarrassing news that the PSP is already outselling the 3DS in Japan, not to mention other cases of potential embarrassment such as players complaining of headaches and the 3DS’s price tag coming under scrutiny.” (http://gamerant.com/nintendo-3ds-sales-terry-78821/)  It’s easy to say that Nintendo 3DS is the dog of the gaming system. With all the different gaming systems out there one that doesn’t make news as much is computerized games. Though games like Sims and World of Warcraft survive the market, how are they able to do this with such little marketing? Both games have a loyal customer base and though they don’t make major changes in the game, new versions and updates are constantly being released. It also helps that to be able to play World of Warcraft you have to pay a monthly subscription. “Blizzard Entertainment, of course, is the Irvine (Calif.)-based maker of the world's most popular and profitable online game, World of Warcraft (WoW), which boasts nearly 11 million monthly subscribers around the globe. The company is also at the heart of the recent $18.9 billion merger with Activision, primarily a maker of console titles such as Guitar Hero and Call of Duty. Born in early July, the newly combined entity, Activision Blizzard (ATVI), is now the industry's biggest player, with projected annual revenues of nearly $4.5 billion.” (http://www.businessweek.com/innovate/content/aug2008/id20080820_123140.htm) It seems that even a company not making headlines can still make plenty revenue to make a profit and become success. There’s a reason it is considered the “question mark” of the gaming world.  

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